BINGHAM FARMS, Mich., March 4 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced it has completed the sale of a property in Milwaukee,
Wisconsin.
The property, with 117,791 square feet of gross leasable area, is located
at 2701 S. Chase Avenue and contains a Chuck E. Cheese's Restaurant. The
property sold for approximately $2.6 million, after expenses.
Malan also announced it is calling for redemption on April 14, 2004,
$5.0 million of its 9.5% Convertible Subordinated Debentures due July 15,
2004. The portion of the Debentures being called will be redeemed at par,
plus accrued but unpaid interest, and retired. The aggregate principal
balance of the Debentures is currently $12.1 million.
"We are pleased to reduce the balance on the Debentures prior to the
redemption date later this year," said Jeffrey Lewis, president and chief
executive officer of Malan Realty Investors. "With the size of our portfolio
now below 2 million square feet, we expect to make additional sales throughout
2004 as we complete the liquidation."
The portion of the Debentures to be redeemed will be selected by lot. The
transfer books for the Debentures will be closed on March 15, 2004 for
purposes of this selection process. The transfer books will be reopened on
the next business day. The Debentures currently trade on the New York Stock
Exchange under the CUSIP number 561063-AA-6001.
Prior to 5:00 p.m., Eastern Time, on April 14, 2004, holders of Debentures
called for redemption may convert their Debentures into shares of Malan common
stock at a price of $17.00 per share, or approximately 58.82 shares per $1,000
principal amount of Debentures. Cash will be paid in lieu of fractional
shares. On March 3, 2004, the closing price of Malan common stock on the New
York Stock Exchange was $5.02 per share.
Holders of Debentures called for redemption who do not convert their
Debentures into Malan common stock will have such Debentures redeemed on April
14, 2004. Upon redemption, they will receive $1,023.49 per $1,000 principal
amount of Notes (consisting of the redemption price of $1,000 plus accrued and
unpaid interest thereon from January 15, 2004 up to but not including April
14, 2004 of $23.49). No further interest will accrue thereafter on Debentures
called for redemption.
A notice of redemption is being mailed to all registered holders of the
Debentures, including, where applicable, information concerning the specific
Debentures selected by lot for redemption. Copies of the notice of redemption
may be obtained from The Bank of New York, the paying agent and conversion
agent, by calling Roxane Ellwanger at (312) 827-8574. The address of The Bank
of New York is 2 N. LaSalle Street, Suite 1020, Chicago, Illinois 60602.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. In August 2002, the
company's shareholders approved a plan of complete liquidation. The company
owns a portfolio of 25 properties located in eight states that contains an
aggregate of approximately 2.0 million square feet of gross leasable area.
Safe Harbor Statement: This news release may contain forward-looking
statements. Although the company believes that the statements and projections
are based on reasonable assumptions, actual results may differ from those
projected. Key factors that could cause actual results to differ materially
include uncertainties regarding the length of time required to sell the
company's properties and execute the plan of liquidation, expenses incurred
during the liquidation period, the company's ability to retire or refinance
its indebtedness as it comes due, its success in selling assets, the changing
market conditions affecting the sale prices of its properties, the
disproportionate effect of changes in proceeds from property sales on
liquidating distributions due to the company's capital structure, economic
downturns, leasing activities, bankruptcies and other financial difficulties
of tenants, the cost of addressing environmental concerns, unforeseen
contingent liabilities, other risks associated with the commercial real-estate
business, and other concerns as detailed in the company's filings from time to
time with the Securities and Exchange Commission.
News releases for Malan Realty Investors are available on the company's
Web site at http://www.malanreit.com or in the Company News section on the PR
Newswire Web site at http://www.prnewswire.com.
SOURCE Malan Realty Investors, Inc.
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Related links:
http://www.malanreit.com
CONTACT:
Media Relations, John Roberson of Malan
Realty Investors, +1-248-644-7110, or Fred Nachman of Marjan
Communications Inc., +1-312-867-1771
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